The homelessness charity is the latest third sector organisation to pull out of the back-to-work scheme
The homelessness charity St Mungo’s has withdrawn from the Work Programme because it has not received any referrals.
Mike McCall, executive director of operations at St Mungo’s, said in a statement that the charity had written to all three prime contractors from which it is subcontracted, withdrawing its involvement with them.
"We took the decision with regret as we had hoped that by delivering our services through the Work Programme we would be able to assist people who were long-term unemployed and disadvantaged to gain jobs," said McCall.
"We look forward to participating in future activities when we can be assured that there is sufficient emphasis on working with those that are furthest from the labour market."
St Mungo’s is the latest in a line of charities to say it is not making a profit from the Work Programme.
In March, the Single Homeless Project pulled out because it said payments through the programme would not cover the cost of getting someone back into work.
And last month, the London Voluntary Service Council said that "informal research" it had carried out revealed that the majority of voluntary sector specialist subcontractors for the Work Programme had had no clients referred to them.